Thursday, October 10, 2013

Who’s got to clean the carpet?


Legal Q&A: Who’s got to clean the carpet?

Question: How long do I have to mail the tenant the itemized security deposit?
Answer: You need to send an accounting for the use of the security deposit within 21 days from the date you took back possession. If you do not have all of the amounts or receipts in time, you should give the tenant an estimate and then send the final amount within 14 days after you receive the final amounts and/or receipts.
Question: I have a lease with a tenant that terminates next month, and he has been given notice that the  lease is not being renewed. If he does not vacate, do I serve a three-day Notice to Quit for Breach  of Covenant?
Answer: You do not have to serve any notice to quit for a tenant who holds over on a fixed-term lease unless you have an automatic renewal clause in your lease. 

Question: Is there a state law that requires a landlord to professionally clean a carpet prior to reoccupancy?
Answer: No, however the tenant is obligated to leave the premises in the same state of cleanliness that the carpet was in when she/he moved in.

Tuesday, October 1, 2013

Preparing HOAs for 2014

Preparing HOAs for 2014

While January 2014 seems a long time away, now is the time for prudent boards, managers and attorneys to begin preparing for the reorganized and relocated Davis-Stirling Common Interest Development Act. There are some things your HOA can do to be more prepared.

Begin collecting consents to receive notifications by e-mail. The new law will permit associations to give electronic notices to members who agree to accept such method of communication. In a large association, the savings of cutting down on postage and paper could be very substantial and small associations will benefit as well. Encourage your members to sign an "opt in" notification. Your association can include it in the next assessment mailing, and have them available at the management office and at board meetings. Remind owners that this will not only save them space and clutter, but will help keep the budget (and therefore assessments) under control.

Review your disciplinary hearing policies (or create some). The new law will require that when the association imposes a reimbursement claim against a member, that claim must be handled using the same process as for member discipline. The law currently does not provide much guidance to boards as to how to conduct these hearings, and unfortunately that is not going to change in the new year. In my experience, boards, having little guidance in the law about how to conduct these hearings, often take far too long. The increase in these hearings in the future means your HOA closed sessions are going to become much longer. Consider adopting policies regarding the conduct of disciplinary and reimbursement hearings, including a reasonable time limit on the homeowner opposing the discipline or reimbursement item.

SB 822: Community Managers
Are Not Contractors 
  
Governor Brown provided a degree of certainty to community association managers by signing Senate Bill (SB) 822 into law, excluding community association managers from the definition of construction consultants for purposes of Section 7026.1 of the Business and Professions Code (regarding construction contractors). SB 822 adds the following language to Section 7026.1 of the Business and Professions (B&P) Code relating to contractors:

"(b) The term "contractor" or "consultant" does not include a common interest development manager, as defined in Section 11501, and a common interest development manager is not required to have a contractor's license when performing management services, as defined in subdivision (d) of Section 11500."
By way of background, last year Section 7026.1 of the B&P Code was amended by the passage of AB 2237 mandating that a consultant overseeing home improvement construction projects have a contractor's license.   This amendment caused concern among some community association managers who were involved in common area maintenance and repair projects or bid compilation for their communities. If community association managers were considered "consultants," then they too would have to have a contractor's license under Section 7026.1

Is Earthquake Damage Coverage Required for HOAs?  

In a recent HOA Homefront, Kelly Richardson addresses a reader's question as to whether a HOA can legally discontinue earthquake insurance. Mr. Richardson advises that there is no law which requires HOAs to have earthquake damage coverage; however, some CC&Rs require it. He goes on to say that management companies should not be making insurance decisions and that this should be left up to the Board of Directors to decide.